Akamai Technologies, Inc.
) is set to report first-quarter 2014 results on May 1. Last
quarter, the company posted 9.30% positive surprise. Let's see
how things are shaping up for this announcement.
Factors This Past Quarter
Robust demand for website and application acceleration
solutions, as well as security product offerings and significant
traffic growth, are expected to support Akamai's top-line growth
in the near term.
We believe that demand for Akamai's cloud infrastructure
solutions, media, performance and security solutions will drive
revenue growth coupled with its strategic partnerships with
) and other carriers will boost its CDN services.
Moreover, the strategic acquisitions made by the company would
extend its expertise in the cyber security product offering in
the non-web applications as well as enterprise data centers.
Nonetheless, pricing pressures due to competition and higher
research & development spending could impact margins in the
Our proven model does not conclusively show that Akamai will
beat earnings this quarter. That is because a stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here, as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 44 cents. Hence, the difference is 0.00%.
Akamai has a Zacks Rank #3 (Hold) which when combined with a
0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
ON Semiconductor Corp.
) has an Earnings ESP of +6.67% and a Zacks Rank #1 (Strong
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